Announcement 2023-6

Rev. Proc. 2016-37 describes a staggered remedial amendment system for pre-approved plans that are qualified under § 401(a) of the Internal Revenue Code. The revenue procedure provides separate six-year remedial amendment cycles for pre-approved defined benefit and pre-approved defined contribution plans. Section 16 of Rev. Proc. 2016-37 provides that the third six-year remedial amendment cycle for pre-approved defined benefit plans ends on January 31, 2025. Section 16 further provides that the IRS may revise the cycle dates to respond to changing circumstances and the needs of plan sponsors and that any such revision will be announced in guidance published in the Internal Revenue Bulletin.

Rev. Proc. 2017-41, 2017-29 I.R.B. 92, modifies the pre-approved letter program by combining the former master and prototype and volume submitter programs into a single opinion letter program. Under this program, providers of pre-approved plans may continue to apply for new opinion letters once every six years. Rev. Proc. 2017-41 sets forth the procedures for providers to obtain opinion letters for qualified pre-approved plans submitted with respect to the third (and subsequent) six-year remedial amendment cycles.

In order to receive opinion letters with respect to the third six-year remedial amendment cycle, Rev. Proc. 2016-37 and the 2020 Cumulative List require that providers update their pre-approved defined benefit plans for changes in plan qualification requirements set forth in the 2020 Cumulative List.

Rev. Proc. 2016-37 and Rev. Proc. 2017-41 provide that when the review process for a cycle of pre-approved plans has neared completion, the IRS will announce the date by which an adopting employer must adopt a newly approved plan. Depending on the date the review process is completed, an adopting employer will have approximately two years to adopt a newly approved plan and, if otherwise eligible, apply for an individual determination letter.

The end of the third six-year remedial amendment cycle for pre-approved defined benefit plans is extended to March 31, 2025. An adopting employer that has a defined benefit plan that is eligible for the six-year remedial amendment cycle system under section 19 of Rev. Proc. 2016-37, and that adopts a newly approved plan on or before March 31, 2025, will be considered to have adopted the plan within the third six-year remedial amendment cycle.

An adopting employer of a newly approved plan may apply for an individual determination letter (if otherwise eligible) during the period beginning April 1, 2023, and ending March 31, 2025. Additional information regarding individual determination letter applications for pre-approved plans, including guidance on employer eligibility to apply for a determination letter for a pre-approved plan and the requirements for applications filed on Form 5307 (or Form 5300, if applicable), may be found in Rev. Proc. 2023-4, 2023-1 I.R.B. 162, including sections 8, 12, and 13.

The collection of information contained in Rev. Proc. 2017-41 with respect to the pre-approved plan program has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1674.

The principal author of this announcement is Jessica Weinberger of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For further information regarding this announcement, contact Employee Plans at (513) 975-6319 (not a toll-free number).